Funding Options

A combination of local, state and federal resources fund most station improvement and new construction projects.

The city of East Lansing, Mich., the Capital Area Transportation Authority and Michigan State University won a $6.28 million grant in 2012 to support construction of a new multimodal facility served by Amtrak, local and intercity buses. The grant was funded through the Federal Transit Administration’s Bus and Bus Facilities Livability Initiative.

Funds might be obtained through grants, loans, and tax credits. The purpose of each resource is different and the approach you take in planning your station project will determine your best option. A station owner might reevaluate a project to consider ways to make it eligible for greater funding.

Multimodalism, in which various transportation modes are linked together in one interconnected system, has long been a goal of federal transportation funding. When contemplating a station project, consider how it could benefit riders across many modes. For example, intercity passenger rail, commuter rail and local bus riders would all benefit from improvements to a shared facility, thus adding to a project’s utility.

Typical Types of Station Restoration Funding

Grants

Requires local match

Loans

Generally set at favorable terms to encourage infrastructure investment

Funding for station projects is generally available through federal funding from the U.S. Department of Transportation (DOT) via the Federal Transit Administration (FTA) and the Federal Highway Administration (FHWA). However, the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Interior also issue viable grants, depending on the project. Detailed information about federal grant opportunities can be found here.

Federal programs are currently funded under the Fixing America’s Surface Transportation (FAST) Act, signed into law in late 2015 and covering Fiscal Years 2016-2020. The FAST Act builds on the foundation established under the predecessor Moving Ahead for Progress in the 21st Century (MAP-21) Act. The FAST and MAP-21 acts emphasize the following:

Maintenance of existing infrastructure to ensure safety and efficiency.

Programs with a History of Success

Communities seeking to fund station improvements have found success with two programs in particular:

Transportation Alternatives(TA, formerly known as Transportation Enhancements and administered by the FHWA) – Provides grants to support the preservation and rehabilitation of historic transportation facilities.

Bus and Bus Facilities (Overseen by the FTA) – Works to rehabilitate or construct intermodal stations that are or will be served by local, regional, or intercity bus providers.

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Amtrak established the Great American Stations Project in 2006 to educate communities on the benefits of redeveloping train stations, offer tools to community leaders to preserve their stations, and provide the appropriate Amtrak resources.

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